Back to top

Image: Bigstock

FUPBY or RPM: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors interested in stocks from the Chemical - Specialty sector have probably already heard of FUCHS SE - Unsponsored ADR (FUPBY - Free Report) and RPM International (RPM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, FUCHS SE - Unsponsored ADR is sporting a Zacks Rank of #2 (Buy), while RPM International has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that FUPBY is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

FUPBY currently has a forward P/E ratio of 17.80, while RPM has a forward P/E of 22.16. We also note that FUPBY has a PEG ratio of 2.05. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. RPM currently has a PEG ratio of 3.60.

Another notable valuation metric for FUPBY is its P/B ratio of 3.42. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, RPM has a P/B of 5.49.

Based on these metrics and many more, FUPBY holds a Value grade of B, while RPM has a Value grade of D.

FUPBY sticks out from RPM in both our Zacks Rank and Style Scores models, so value investors will likely feel that FUPBY is the better option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


RPM International Inc. (RPM) - free report >>

FUCHS SE - Unsponsored ADR (FUPBY) - free report >>

Published in